OKLAHOMA CITY, Sept 22 (Reuters) - Kansas City Fed President Esther George said on Friday the muted market reaction to the launch of the Fed’s balance sheet reduction plan was a welcome development for the central bank.

Regarding the Fed’s announcement on Wednesday that it would start to shrink its balance sheet in October, “I was gratified to see (it) did not cause strong reaction in the market,” said George. The plan “was very well telegraphed,” she said.